Page 223 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
(CNO 3420.120) Planning and Performing the Engagement
1A. Assessing Applicable Criteria Suitability: The practitioner shall assess whether the applicable criteria are
suitable, as required by the Framework for Assurance Engagements.
1B. Materiality Consideration: When planning and performing the engagement, the practitioner shall consider
materiality with respect to evaluating whether the pro forma financial information has been compiled, in all
material respects, on the basis of the applicable criteria.
2A. Understanding Compilation Process: An understanding of how the responsible party has compiled the
pro forma financial information and other engagement circumstances is essential.
3A. Obtaining Evidence of Source Appropriateness: The practitioner shall obtain evidence about the
appropriateness of the source from which the unadjusted financial information has been extracted.
3B. Procedures for Non-audited Source:
If there is no audit or review report on the source from which the unadjusted financial information has been
extracted, the practitioner shall perform procedures to be satisfied that the source is appropriate.
3C. Determining Appropriate Extraction: The practitioner shall determine whether the responsible party has
appropriately extracted the unadjusted financial information from the source.
4A. Obtaining Evidence on Adjustments: The practitioner shall obtain evidence about the appropriateness of
the pro forma adjustments.
(a) Significant Events: Adjustments to unadjusted financial information that illustrate the impact of a
significant event or transaction as if the event had occurred or the transaction had been undertaken at an
earlier date selected for purposes of the illustration.
(b) Consistency with Reporting Framework: Adjustments to unadjusted financial information that are
necessary for the pro forma financial information to be compiled on a basis consistent with the applicable
financial reporting framework of the reporting entity and its accounting policies under that framework.

4B. Evaluating Presentation of Information: The practitioner shall evaluate the presentation of pro forma
financial information.
5. Reviewing Additional Prospectus Information: The practitioner shall read the other information included
in the Prospectus containing the pro forma financial information to identify material inconsistencies, if any,
with pro forma financial information.

(CNO 3420.140) Written Representations
The practitioner shall request written representations from the responsible party that: -
All Pro Forma Adjustments: In compiling the pro forma financial information, the responsible party has
identified all appropriate pro forma adjustments necessary to illustrate the impact of the event or transaction at
the date or for the period of the illustration and
Compliance with Applicable Criteria: The pro forma financial information has been compiled, in all material
respects, on the basis of the applicable criteria.

(CNO 3420.160) Opinion
Unmodified Opinion
Expressing an Unmodified Opinion: The practitioner shall express an unmodified opinion when the
practitioner concludes that the pro forma financial information has been compiled, in all material respects, by
the responsible party on the basis of the applicable criteria.
Modified Opinion
1. Law or regulation precludes publication: Where the relevant law or regulation precludes publication of a
prospectus that contains a modified opinion with regard to whether the pro forma financial information has
been compiled, in all material respects, on the basis of the applicable criteria and the practitioner concludes that

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